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Microsoft Stock Price - more of the same

I’ve been holding a few April call contracts in Microsoft (symbol: MSFT)since late 2006 and was happy to have ridden a portion of the wave up from the high twenties to nearly $31/share leading up to the consumer launch of Vista.

Unfortunately, my profits have all but evaporated over the last couple weeks after a less than exciting product launch and many less than warm reviews of the product in general.  The buzz just isn’t out there for Vista. Those that have tried it say it has a few nice whiz-bang features, but really nothing to write home about.

Is it too much to ask that after 5 plus years in development, Microsoft add a little flash to their product to really build up some excitement?  Whether the changes are earth shattering or not, consumers just want flash.  They are used to the upgrade process by now, they are used the hardware driver issues by now, they are used to having to install third-party virus scanners and spyware detection software now, give them something new. Give them something that will make all the PC magazines gush over for at least a few months.

The most recent announcement by Ballmer noted that revenue projections for Vista were overly optimistic which, as of this writing, has caused the stock to decline close to 3% today.  Microsoft is still making boatloads of money, but until they do something to cause some excitement and buzz in the industry, I’m afraid their product sales and stock price will languish.

1 Comment on “Microsoft Stock Price - more of the same”

  1. #1 Travis
    on Apr 25th, 2007 at 7:17 pm

    A quick update on the Vista front… Jim Woods at ChangeWave Alliance did a study (link below) on Vista adoption by Corporate and Consumer customers and found out what we all knew…Vista excitement and uptake is subdued.
    58% of corporate customers have “No Plans to Upgrade to Vista” at the present time.

    85% of consumers say “No” to the question “Do you plan on upgrading an existing computer in your home to the Vista operating system in the next 90 days?”.

    More importantly, 24% and 28% of consumer and corporate customers respectively that have tried Vista say they are unsatisfied with the new operating system. Its one thing to have malaise over a new product offering, its another to actually be unsatisfied with it.

    I hope Microsoft can infuse some more excitement into this product. If they are just achieving adoption through the normal upgrade cycle, that isn’t going to do a lot to increase revenue/profits.

    Here is a link to the SeekingAlpha article about the report: http://biz.yahoo.com/seekingalpha/070425/33418_id.html?.v=1

    Here is a link to the ChangeWave Alliance (the creators of the report):
    http://www.changewave.com/Alliance/seeking.htm?SPONSORCD=95000

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